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ARTICLE · 02 FEBRUARY 2021

Sublimits a case of each to their own in rectified D&O insurance programme

Gilchrist Connell
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Judgment highlights the high evidentiary threshold to be met to successfully effect rectification of an insurance policy.

AustraliaInsurance
Dan Robinson
Dan Robinson
Helen Tieu
Helen Tieu
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The Federal Court of Australia has recently handed down a decision concerning a claim for rectification of a Side C sublimit under a multilayered directors' and officers' liability programme (D&O Programme).

In Quintis Ltd (Subject to Deed of Company Arrangement) v Certain Underwriters at Lloyd's London Subscribing to Policy Number B0507N16FA15350 1 Justice Lee upheld the insured's claims for rectification against one of three subscribing insurers on the first excess layer, and one of seven insurers on the second excess layer of the 2016 to 2017 D&O Programme, but the claims against the other subscribing insurers, including the primary insurers, failed.

This judgment highlights the high evidentiary threshold to be met to successfully effect rectification of an insurance policy. It also highlights that, where there is a multilayered insurance programme, rectification may be assessed separately for each insurance contract comprising the programme. Further,

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